Cybercrime in Malta: A Growing Concern for Financial Institutions
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Malta’s financial sector is facing a growing threat from cybercrime, with hackers increasingly targeting the country’s banks and financial institutions. According to experts, cybersecurity risk is one of the greatest concerns for board members in companies around the world, and Malta is no exception.
What is Cyber Risk?
The Institute of Risk Management defines cyber risk as “any risk of financial loss, disruption or damage to the reputation of an organisation from some sort of failure of its information technology systems.” In recent years, regulators have increased their focus on cybersecurity risk, with the European Banking Authority publishing guidelines on ICT and security risk last year. The European Securities and Market Authority has also extended its operational risks analysis to include cyber risk.
Types of Cyber Threats
According to a report by ENISA, there are 15 different types of cyber threats that can be used against financial institutions, including:
- Denial of service
- Information leakages
- Data breaches
- Identity thefts
- And more…
Once a hacker gains access to a system, they can steal sensitive information, sell it on the dark web, or use it for their own financial gain.
The Dark Web
The dark web is a separate part of the internet that cannot be indexed by search engines, making it difficult to track down hackers who operate in this space. Accessing the dark web requires specialized software and hardware, including virtual private networks (VPNs) and Tor browsers. Once on the dark web, hackers can sell stolen information, including:
- Identities
- Credit card details
- Passport numbers
The Risks of Cybercrime
Malta’s financial institutions are at risk of falling victim to cyber attacks, which can result in significant financial losses and reputational damage. According to experts, it is often difficult for entities to realize they are under attack until it is too late. By the time the attack is uncovered, hackers may have already stolen sensitive information or sold it on the dark web.
Combating Cybercrime
To combat this growing threat, Malta’s financial institutions must invest in:
- People: training and awareness
- Infrastructure: implementing robust cybersecurity measures, such as firewalls and encryption, and conducting regular security audits
- Education: educating employees about the risks of cybercrime and providing them with the necessary tools to identify and respond to potential threats
Conclusion
In an increasingly digital operating environment, cybersecurity will continue to dominate the regulatory and strategic agenda in Malta’s financial sector. As hackers become more sophisticated, it is essential that financial institutions stay one step ahead by investing in robust cybersecurity measures and educating their employees about the risks of cybercrime.